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ACI

3I0-013 · Question #127

Settlement risk is:

The correct answer is B. The risk that exchange rates move against a bank's position. See the full explanation below for the reasoning.

Question

Settlement risk is:

Options

  • AThe risk that a bank makes its payment but does not receive a return payment in the
  • BThe risk that exchange rates move against a bank's position
  • CThe risk a counterparty defaults on a contract and a bank has to replace that contract at
  • DThe risk of a disaster that disables a bank's trading floor

How the community answered

(50 responses)
  • A
    6% (3)
  • B
    82% (41)
  • C
    10% (5)
  • D
    2% (1)

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Full 3I0-013 Practice